Comp Wiz sells computers. During May, it sold 350 computers at a $1,200 average price each. The May fixed budget included sales of 365 computers at an average price of $1,100 each. 1. Compute the sales price variance and classify it as favorable or unfavorable. 2. Compute the sales volume variance and classify it as favorable or unfavorable.

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Chapter18: Pricing And Profitability Analysis
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Comp Wiz sells computers. During May, it sold 350 computers at a $1,200 average price each. The May
fixed budget included sales of 365 computers at an average price of $1,100 each.
1. Compute the sales price variance and classify it as favorable or unfavorable.
2. Compute the sales volume variance and classify it as favorable or unfavorable.

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